On Wednesday, Spotify announced that it now has more than 75 million active users and 20 million of these are paid subscribers.
"What a difference a year makes! At the end of May 2014, we reached 10 million paying subscribers and 40 million active users. Today, we have reached more than 20 million subscribers and more than 75 million active users," said Spotify. "10 million subscribers in our first five and a half years - and another 10 million subscribers in just a single year! That's an average of one new subscriber every three seconds over the last year." With all of this activity, Spotify has been able to pay more royalties to artists. Since it launched in 2008, Spotify has paid out over $3 billion in royalties, $300 million of which came in the first three months of 2015. With 10 million subscribers, Spotify notes that a "niche/indie artist" received $0.7 million in royalties over 12 months but, with double the user base, Spotify projects the royalties to rise to $1.2 million over 12 months. Recently, Spotify closed a $526 million funding round, bringing its value to $8.53 billion.
"Oh ok," tweeted Spotify CEO Daniel Ek, apparently unfazed by Apple's big reveal of its new Apple Music streaming service. Ek quickly deleted the tweet, but these new user numbers show that Apple has a lot of work ahead of it. Spotify, and others, have a decent lead on Apple Music, but the new service looks to steal some of its competitors' users with a 3 month free trial. Apple Music is set to hit the stage on June 30th, priced at $9.99 a month following the extended free trial.
Photo: © Creative Commons - Flickr: joelgoodman.